Tonga boosts development projects

TONGA’S latest budget makes pro vision for T 571.74 million (U 5554.76 million) to be spent in the 1990-91 year on development pro jects, an increase of T 529.08 million (U 5522.19 million) over the previous year. Finance Minister Cecil Cocker said in a statement that the priority was being placed on roads, airports, wharves, water supplies, electricity, post offices and small industry centres all the infras tructure needed to foster private sector

production, growth and marketing. A

large proportion of the development

budget will be channelled into the Tonga Development Bank with Sea Star Fishing Co Ltd to be established as a public com pany with the Government providing a substantial share of its initial capital.

The budget statement also targets assistance to vanilla and other crops, de velopment of tree nurseries and the Mataliku sawmill, construction of tuna fishing vessels, setting up a second in dustry centre at Popua on Tongatapu.

The Asian Development Bank is ex pected to be the largest single source of funds, with money also coming in the form of aid from Australia, the Euro pean Community, Japan and New Zea

land. Transfers from the Tonga Trust Fund (proceeds of passport sales) are budgetted to bring TsB million, with another Ts 4 million to be raised through the issue of Government bonds.

The total Budget expenditure will be T 5119.7 million, only slightly up on last year. Total estimated revenue is T 548.05 million. Other than development pro jects, the largest allocations are for education (T|B.6 million), health (T 55.2 million) and public works (T 53.9 mil lion).

The income tax threshold is to be raised from Ts2ooo to T|2500 to ex empt the poorer people, while farmers and fishermen are to be exempt from income tax altogether. The Industrial Development Incentives Act is to be amended to expand the system of de velopment licences to cover commercial export fishermen and farmers, and to allow for tax holidays of 15 years for

approved enterprises, especially those

which boost foreign exchange earnings.

Meanwhile, farmers will receive added protection from imports by means of

higher duties on imported poultry, pork

and other fresh and frozen meats. □